tv Business Briefing BBC News December 7, 2017 5:30am-5:46am GMT
this is business briefing. i'm sally bundock. sins of emission — a vw executive is jailed for seven years in the us for his role in the dieselgate scandal. plus, basel faulty? we ask if europe's new financial rules will prevent another crisis, orjust choke off investment. and on the markets in asia, we are seeing a sharp bounce back from yesterday ‘s losses, the mick kaye up over 1%. —— —— nikkei. we start in the us where one of vw‘s top executives there has been sentenced to seven years in prison and fined $400,000 for his role in the dieselgate scandal.
the judge described oliver schmidt as "a key conspirator in this scheme to defraud the united states". andrew plant reports. oliver schmidt, once one of volkswagen's top american employees, now sentenced to seven years in prison. a car manufacturer in a competitive market, vw admitted fitting around 11 million diesel cars with what is called a defeat device. it meant the cars could sense when they were running in the uniformed conditions of a testing lab and automatically reduced their emissions. cheating a test the vehicles should never have passed. it meant that schmidt was able to certify that vw diesels complied with strict american standards and that meant boosting sales targeting environmentally conscious customers with supposedly cleaner cars. the scandal came to light in 2015. oliver schmidt is the second employee sent to prison. a veteran vw engineer was given a0 months in august.
schmidt was arrested while on holiday in miami. but five more of the company's employees are wanted in the us but remain in germany. in a scandal that has already cost volkswagen an estimated $30 billion. the company has since announced a big investment into electric vehicles and driverless cars, saying it plans to become a world leader in the field by 2015. andrew plant, bbc news. it's ten years since the financial crisis but up until now, there's been no agreement across europe on how to stop it happening again. that could change at a meeting in frankfurt later. central bank chiefs are expected to decide new rules on just how much cash banks have to keep on hand for an emergency. they are known as basel three after the swiss city, but what are the key issues?
until now, banks have been allowed to decide for themselves how much cash they need to stash away. but under new rules, there will be what they call a ‘standard approach‘ to assess the riskiness of the mortgages, loans and debt that each bank holds. basically, it will mean many european banks will need to hold more cash in reserve. and the banks argue that means less money to lend out, which could damage the economy and it could make them less competitive. in the uk, rules have been tightened up since the crisis with banks subjected to annual ‘stress tests'. early last week, the bank of england said all uk banks passed the latest tests. despite the severity of the test, for the first time since the bank began stress testing in 2014, bank
needs to strengthen its capital position a result. informed by the stress test in our own risk analysis, we also charged that the banking system can continue to support the real economy, even in the unlikely event of a disorderly brexit. jan wolter is head of european banks at credit suisse. good morning. give us your take on these new rules that have been grappled with across europe. how was that give will they be?” grappled with across europe. how was that give will they be? i think the rules that we expect today, the announcement, is the final component of the basel three package. the aim here is to first make things more resilient and we have already seen liquidity requirements increase over a numberof years. liquidity requirements increase over a number of years. that makes banks more resilient in times of economic stress. when the market worked less well. the final component of the
package, which could be announced today, it is about strengthening the models that banks use to calculate the capital requirements, and this is to make the capital rates more probable across the region. is to make the capital rates more probable across the regionm is to make the capital rates more probable across the region. if we cut to the chase as it were, will it do thejob, will it cut to the chase as it were, will it do the job, will it prevent another crisis that we saw ten years ago from happening again? they have already increased liquidity buffers significantly and requirements have gone up since the crisis. currently, then sold more than 70% higher capital levels... but is that across europe because there are concerns about some countries, there taking sick looking vulnerable, like italy for example. i think banks across the board in europe and elsewhere have increased the capital levels but there were a number of issues that this package is meant to solve over and above that. talk us through some of those issues. one issue is
the stuff that banks use to calculate their capital requirements are different across different regions and the aim here is to make them more probable and to constrain them more probable and to constrain the different models that the banks can use and this will ensure that the credibility of the system improves. we will watch this space. again, thank you. we will keep an eye on that story. let's stay with the banking industry because the boss of global bank standard chartered has been speaking to our business editor, simonjack. he described contingency planning for brexit is "expensive, complicated and inconvenient". and he's concerned young people from outside the uk are already being put off a career in london. we have already had some, i think, some setbacks of the talent pool in london through the restrictions of student visas, it is already a
problem, and i think some of the best talent that we can have in the uk marketplace are coming from stu d e nts uk marketplace are coming from students who have chosen to study here and have stayed for only period afterwards. and you have noticed the impact already? we have, or through a sense of non—uk orforeigners, this may not be such inhospitable place any longer so it's more psychological than contractural as it were a city something that we must be careful about and the uk have been successful largely because it has been a welcoming place for talent from any part of the world andi talent from any part of the world and i know when i listen to the government, the government spokespeople, they say it will continue, it is their intention, but u nfortu nately not continue, it is their intention, but unfortunately not all of the body language is and references support that rhetoric. the international monetary fund has raised the alarm about the high level of debt in china, saying it poses a risk to financial stability. that hasn't gone down well in beijing. let's go to our asia business hub where rico hizon is following the story. nice to see you. this is something
many have been saying for some time they are concerned about. red flags! it could potentially cripple, sally, the mainland's financial standard. it was found that credit is high by international levels, personal debt had increased over the past five yea rs, had increased over the past five years, and pressure to maintain the country's rapid creek had read an unwillingness to let struggling companies fail. while breathing china's president, —— praising the president, the imf said reforms by shay —— beijing in recent years had not gone far enough. the people's bank of china issued a report saying that while the report is objective and pertinent, stress test show the financial system has a relatively strong ability to fend off any risk and some economists believe that and they have mentioned it but we should
stop worry about the debt, they point to three factors, massive credit card surplus, and that predator to the rest of the world put decades, and beijing's outstanding public—sector debt valued at $4 trillion is morphed by the vast assets controlled by the various levels of government. we will have to wait and see going forward how this will have an impact. we will watch with great interest, thank you. let's tell you about some of the other stories. bitcoin has soared to a new record high above $14,000 on the luxembourg—based bitstamp exchange. the virtual currency has surged from below $1,000 at the beginning of the year despite questions about its real value and worries about a dangerous bubble. steinhoff international, the owner of poundland in the uk, has seen its shares fall by almost two thirds after it announced a probe into accounting irregularities. chief executive markusjooste has resigned and the south african group has postponed its full—year results. steinhoff owns 40 local brands in more than 30 countries. and now, what's trending
in the business news this morning: cnbc is following the takeover battle for parts of 21st century fox. comcast continues to pursue 21st century fox assets, fox continues to view disney as superior bid. the guardian's business section is among those reporting this — china's debt levels pose stability risk, says imf. the lender says reforms haven't gone far enough and notes similarities to the us in 2008. and on bloomberg, avocado surge over! it says "guacamole fans take heart — the price of avocados has fallen more than 50% since thejuly peak." and don't forget — let's us know what you are spotting and don't forget — let's us know what you are spotting online. use the hashtag #bbcthebriefing. a quick look at the markets, a
better picture than this time yesterday, japan over 1% after its 296 yesterday, japan over 1% after its 2% fall wednesday. that across asia are bouncing back after a realfalls for asian share markets. the longest losing streak for more than two yea rs losing streak for more than two years was marked yesterday. i will be back in a moment. the number of patients experiencing long waits in accident and emergency departments in the uk has more than doubled in the last four years. research by the bbc found that more than three million people waited longer than the four hour target in the last year. doctors say it shows the nhs can no longer cope. the department of health said more money had been made available to nhs england. dominic hughes reports. right across the uk, accident and
emergency departments have been working at full capacity. now, bbc analysis shows how an already busy system is struggling to cope. the waiting time target to treat or deal with 95% of patients within four hours as the mist across the country. in the past year, more than 3 million patients waited longer than four hours, an increase of 120% on four years ago. it visits to a&e are up by only 7% to nearly 27 million. to ensure the target is met, the nhs would need to build an additional 20 one departments. there is no more capacity in the system, all staff are working really hard, all staff are working really hard, all nurses, alt. is. and we have reached a point where we
u nfortu nately reached a point where we unfortunately cannot meet the demand —— our doctors. unfortunately cannot meet the demand -- our doctors. scotland has come closest to hitting the target while england has seen the biggest increase in those facing a long wait. the performance is even worse in wales, in northern island managers to see three quarters of patients within four hours. a busy nhs meant longer waiting times and as we head into what could be hard winter, there is little sign of respite from staff or patients. coming up at 6:00 on breakfast — charlie stayt and naga munchetty will have all the day's news, business and sport. plus, the queen will commission the royal navy's new aircraft carrier into service at a ceremony in portsmouth. it's the largest and most expensive ship built for the navy. you are with a briefing from bbc news. these are the headlines. widespread international criticism of president trump of the reckless of president trump of the reckless ofjerusalem as is the's capital.
some of their closest allies have called an emergency meeting of the un security council. the australian parliament is holding what is expected to be its final debate on whether to legalise same—sex marriage. a vote approving the measure is expected any moment. president are one is due to arrive in brief —— greece today. the first such visit by a turkish head of state to 65 years. —— erodgan. lets think deeper with some of the stories that the media has today. we begin with, gulf news on the story dominating several global front pages. it's headline reads: ‘trump crosses the red line', after breaking from decades of us and international policy by recognising jerusalem as israel's capital. pope francis expressing deep concern over the situation. now looking at russian news agency tass.
vladimir putin has announced his bid for next year's presidential race, putting him on course for 24 years in power. his re—election campaign will be unrolling next february, when the winter olympics gets underway, with the russian team banned by the ioc. turning to german online publication deutsche welle. this story trending on their site, ‘german pilots refuse to carry out deportations.‘ it‘s been revealed 222 asylum seekers have had their deportations stopped by pilots not wanting to take the refugees back to afghanistan, where violence is still rife. at the same time, refugees are appealing their deportation orders in record numbers and winning.